Amendment AA22-AA2-ASA1-AB133

AB133-ASA1-AA2-AA22,4,2 6. "Principal dwelling" means any dwelling, whether owned or rented, and the land surrounding it that is reasonably necessary for use of the dwelling as a primary dwelling of the claimant and may include a part of a multidwelling or multipurpose building and a part of the land upon which it is built that is used as the claimant's primary dwelling.

AB133-ASA1-AA2-AA22,4,17 7. "Property taxes" means real and personal property taxes, exclusive of special assessments, delinquent interest and charges for service, paid by a claimant on the claimant's principal dwelling during the taxable year for which credit under this subsection is claimed, less any property taxes paid which are properly includable as a trade or business expense under section 162 of the Internal Revenue Code. If the principal dwelling on which the taxes were paid is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned by spouses as marital property, "property taxes" is that part of property taxes paid that reflects the ownership percentage of the claimant. If the principal dwelling is sold during the taxable year the "property taxes" for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale or, if not so provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to the months of their respective ownership. "Property taxes" includes monthly parking permit fees in respect to a principal dwelling collected under s. 66.058 (3) (c).

AB133-ASA1-AA2-AA22,5,3 8. "Rent constituting property taxes" means 25% of rent if heat is not included, or 20% of rent if heat is included, paid during the taxable year for which credit is claimed under this subsection, at arm's length, for the use of a principal dwelling and contiguous land, excluding any payment for domestic, food, medical or other services which are unrelated to use of the dwelling as housing, less any rent paid that is properly includable as a trade or business expense under the Internal Revenue Code. "Rent" includes space rental paid to a landlord for parking a mobile home. Rent shall be apportioned among the occupants of a principal dwelling according to their respective contribution to the total amount of rent paid. "Rent" does not include rent paid for the use of housing which was exempt from property taxation, except housing for which payments in lieu of taxes were made under s. 66.40 (22).

AB133-ASA1-AA2-AA22,5,11 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, one of the amounts calculated under this paragraph; except that if the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income, and if the claimant's household income is less than $50,000, the amount of the claim not used as an offset against those taxes shall be certified by the department to the department of administration for payment to the claimant by check, share draft or other draft from the appropriation under s. 20.835 (2) (e):

AB133-ASA1-AA2-AA22,5,15 1. If the claimant is single or is married and files a joint income taxES return and if the claimant's income is less than $8,000 in the year to which the claim relates, 80% of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling.

AB133-ASA1-AA2-AA22,5,19 2. If the claimant is married and files a separate income tax return and if the claimant's income is less than $4,000 in the year to which the claim relates, 80% of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling.

AB133-ASA1-AA2-AA22,5,24 3. If the claimant is single or is married and files a joint income tax return and if the claimant's income is at least $8,000 but less than $21,000 in the year to which the claim relates, a percentage of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling that is calculated as follows:

AB133-ASA1-AA2-AA22,6,3 a. Calculate the value of a fraction, the denominator of which is $13,000 and the numerator of which is the difference between $21,000 and the claimant's household income.

AB133-ASA1-AA2-AA22,6,4 b. Subtract from 1.0 the amount that is calculated under subd. 3. a.

AB133-ASA1-AA2-AA22,6,6 c. Subtract the percentage of property taxes accrued in subd. 5. from the percentage of property taxes accrued in subd. 1.

AB133-ASA1-AA2-AA22,6,8 d. Multiply the percentage determined under subd. 3. c. by the number calculated under subd. 3. b.

AB133-ASA1-AA2-AA22,6,10 e. Subtract from the percentage of property taxes accrued in subd. 1. the amount calculated in subd. 3. d.

AB133-ASA1-AA2-AA22,6,15 4. If the claimant is married and files a separate income tax return and if the claimant's income is at least $4,000 but less than $10,500 in the year to which the claim relates, a percentage of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling that is calculated as follows:

AB133-ASA1-AA2-AA22,6,18 a. Calculate the value of a fraction, the denominator of which is $6,500 and the numerator of which is the difference between $10,500 and the claimant's household income.

AB133-ASA1-AA2-AA22,6,19 b. Subtract from 1.0 the amount that is calculated under subd. 4. a.

AB133-ASA1-AA2-AA22,6,21 c. Subtract the percentage of property taxes accrued in subd. 5. from the percentage of property taxes accrued in subd. 1.

AB133-ASA1-AA2-AA22,6,23 d. Multiply the percentage determined under subd. 4. c. by the number calculated under subd. 4. b.

AB133-ASA1-AA2-AA22,6,25 e. Subtract from the percentage of property taxes accrued in subd. 1. the amount calculated in subd. 4. d.

AB133-ASA1-AA2-AA22,7,4 5. If the claimant is single and if the claimant's income is at least $21,000 but less than $105,000 in the year to which the claim relates, 12.2% of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling.

AB133-ASA1-AA2-AA22,7,8 6. If the claimant is married and files a joint income tax return and if the claimant's income is at least $21,000 but less than $140,000 in the year to which the claim relates, 12.2% of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling.

AB133-ASA1-AA2-AA22,7,12 7. If the claimant is married and files a separate income tax return and if the claimant's income is at least $10,500 but less than $70,000 in the year to which the claim relates, 12.2% of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling.

AB133-ASA1-AA2-AA22,7,16 8. If the claimant is single and if the claimant's income is at least $105,000 but less than $115,000 in the year to which the claim relates, a percentage of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling that is calculated as follows:

AB133-ASA1-AA2-AA22,7,19 a. Calculate the value of a fraction, the denominator of which is $10,000 and the numerator of which is the difference between $115,000 and the claimant's household income.

AB133-ASA1-AA2-AA22,7,20 b. Subtract from 1.0 the amount that is calculated under subd. 8. a.

AB133-ASA1-AA2-AA22,7,22 c. Subtract the percentage of property taxes accrued in subd. 11. from the percentage of property taxes accrued in subd. 5.

AB133-ASA1-AA2-AA22,7,24 d. Multiply the percentage determined under subd. 8. c. by the number calculated under subd. 8. b.

AB133-ASA1-AA2-AA22,8,2 e. Subtract from the percentage of property taxes accrued in subd. 5. the amount calculated in subd. 8. d.

AB133-ASA1-AA2-AA22,8,7 9. If the claimant is married and files a joint income tax return and if the claimant's income is at least $140,000 but less than $150,000 in the year to which the claim relates, a percentage of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling that is calculated as follows:

AB133-ASA1-AA2-AA22,8,10 a. Calculate the value of a fraction, the denominator of which is $10,000 and the numerator of which is the difference between $150,000 and the claimant's household income.

AB133-ASA1-AA2-AA22,8,11 b. Subtract from 1.0 the amount that is calculated under subd. 9. a.

AB133-ASA1-AA2-AA22,8,13 c. Subtract the percentage of property taxes accrued in subd. 11. from the percentage of property taxes accrued in subd. 5.

AB133-ASA1-AA2-AA22,8,15 d. Multiply the percentage determined under subd. 9. c. by the number calculated under subd. 9. b.

AB133-ASA1-AA2-AA22,8,17 e. Subtract from the percentage of property taxes accrued in subd. 5. the amount calculated in subd. 9. d.

AB133-ASA1-AA2-AA22,8,22 10. If the claimant is married and files a separate income tax return and if the claimant's income is at least $70,000 but less than $75,000 in the year to which the claim relates, a percentage of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling that is calculated as follows:

AB133-ASA1-AA2-AA22,8,25 a. Calculate the value of a fraction, the denominator of which is $5,000 and the numerator of which is the difference between $75,000 and the claimant's household income.

AB133-ASA1-AA2-AA22,9,1 b. Subtract from 1.0 the amount that is calculated under subd. 10. a.

AB133-ASA1-AA2-AA22,9,3 c. Subtract the percentage of property taxes accrued in subd. 11. from the percentage of property taxes accrued in subd. 5.

AB133-ASA1-AA2-AA22,9,5 d. Multiply the percentage determined under subd. 10. c. by the number calculated under subd. 10. b.

AB133-ASA1-AA2-AA22,9,7 e. Subtract from the percentage of property taxes accrued in subd. 5. the amount calculated in subd. 10. d.

AB133-ASA1-AA2-AA22,9,11 11. If the claimant is single and if the claimant's income is $115,000 or more in the year to which the claim relates, 10% of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling.

AB133-ASA1-AA2-AA22,9,15 12. If the claimant is married and files a joint income tax return and if the claimant's income is $150,000 or more in the year to which the claim relates, 10% of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling.

AB133-ASA1-AA2-AA22,9,19 13. If the claimant is married and files a separate income tax return and if the claimant's income is $75,000 or more in the year to which the claim relates, 10% of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling.

AB133-ASA1-AA2-AA22,9,21 (c) Limitations, general. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB133-ASA1-AA2-AA22,9,23 2. Part-year residents and nonresidents of this state are not eligible to claim the credit under this subsection.

AB133-ASA1-AA2-AA22,9,25 (d) Property taxes accrued limitations. The maximum property taxes accrued, or rent constituting property taxes accrued, or both, that may be used in calculating the credit under par. (b), with respect to any one household, may not exceed $2,000 in 1999 or any subsequent calendar year, except that if the claimant is married and files a separate return the maximum property taxes accrued, or rent constituting property taxes accrued, or both, that may be used in calculating the credit under par. (b), with respect to any one household, may not exceed $1,000.

AB133-ASA1-AA2-AA22,10,10 (e) Administration. The department may enforce the credit under this subsection and may take any action, conduct any proceeding and proceed as it is authorized in respect to taxes under this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest and penalties apply to the credit under this subsection.".".

AB133-ASA1-AA2-AA22,10,11 17. Page 247, line 2: after that line insert:

AB133-ASA1-AA2-AA22,10,12 "599m. Page 850, line 9: delete "1999" and substitute "1998".

AB133-ASA1-AA2-AA22,10,13 18. Page 247, line 4: after "(6m)" insert ", (7m)".

AB133-ASA1-AA2-AA22,10,14 19. Page 247, line 10: after that line insert:

AB133-ASA1-AA2-AA22,10,15 "603m. Page 851, line 7: after that line insert:

AB133-ASA1-AA2-AA22,10,16 " Section 1719k. 71.10 (4) (cn) of the statutes is created to read:

AB133-ASA1-AA2-AA22,10,18 71.10 (4) (cn) Property tax refund credit under s. 71.07 (7m), to the extent that the credit is nonrefundable.".".

AB133-ASA1-AA2-AA22,10,20 20. Page 250, line 2: after "(2fd)," insert "property tax refund credit under s. 71.07 (7m), to the extent that the credit is refundable,".

AB133-ASA1-AA2-AA22,10,21 21. Page 250, line 4: after that line insert:

AB133-ASA1-AA2-AA22,10,23 "605g. Page 851, line 17: delete the material beginning with that line and ending with page 852, line 2.

AB133-ASA1-AA2-AA22,10,24 605r. Page 853, line 9: delete lines 9 to 13.".

AB133-ASA1-AA2-AA22,11,2 22. Page 255, line 16: delete the material beginning with that line and ending with page 256, line 12.

AB133-ASA1-AA2-AA22,11,4 23. Page 262, line 10: delete the material beginning with that line and ending with page 263, line 6.

AB133-ASA1-AA2-AA22,11,5 24. Page 265, line 10: after that line insert:

AB133-ASA1-AA2-AA22,11,7 "632e. Page 944, line 22: delete the material beginning with that line and ending with page 945, line 13.

AB133-ASA1-AA2-AA22,11,8 632m. Page 945, line 19: after that line insert:

AB133-ASA1-AA2-AA22,11,9 " Section 1764e. 71.55 (11) of the statutes is created to read:

AB133-ASA1-AA2-AA22,11,12 71.55 (11) Sunset. No new claim may be filed under this subchapter for a taxable year that begins after December 31, 1999, based on property taxes accrued in the previous year.".

AB133-ASA1-AA2-AA22,11,14 632s. Page 946, line 4: delete the material beginning with that line and ending with page 947, line 20.".

AB133-ASA1-AA2-AA22,11,16 25. Page 271, line 19: delete the material beginning with that line and ending with page 272, line 22.

AB133-ASA1-AA2-AA22,11,17 26. Page 500, line 3: delete lines 3 to 9.

AB133-ASA1-AA2-AA22,11,18 27. Page 563, line 12: delete lines 12 to 16.

AB133-ASA1-AA2-AA22,11,19 28. Page 570, line 15: delete lines 15 to 20.

AB133-ASA1-AA2-AA22,11,20 29. Page 594, line 19: after that line insert:

AB133-ASA1-AA2-AA22,11,21 "1163m. Page 1598, line 13: after that line insert:

AB133-ASA1-AA2-AA22,12,2 "(14z) Property tax refund credit. The treatment of sections 20.835 (2) (e), 71.07 (7m), 71.08 (1) (intro.) (as it applies to the property tax refund credit) and 71.10 (4) (cn) and (i) of the statutes first applies to taxable years beginning on January 1, 1999.".".

AB133-ASA1-AA2-AA22,12,3 30. Page 596, line 18: delete lines 18 to 22.

AB133-ASA1-AA2-AA22,12,4 (End)